“Afreximbank had continued to validate the wisdom of its founders who created an institution to assist the continent in trying times”, says Dr. Larose.
July 07, 2017
Friday 7th July 2017, VICTORIA, SEYCHELLES: The Minister for Finance, Trade and Economic Planning, Dr. Peter Larose attended the 24th Annual General Meetings of the African Export-Import Bank (Afreximbank), held in Kigali, Republic of Rwanda, from 28th June to 02nd July 2017.
The AGM was held under the theme ‘Trade and Economic Transformation”.
Speaking at the opening of the AGM, Dr. Larose, the Minister for Finance, Trade and Economic Planning of Seychelles also the Chairman of the General Meeting of Shareholders, said that despite the challenges, Afreximbank had continued to validate the wisdom of its founders, who created an institution to assist the continent in trying times.
“A shining example was the Countercyclical Trade Liquidity Facility, which was developed to avail foreign currency liquidity to African Central Banks to cushion them from the impact of adverse economic conditions, and under which $6.45 billion was disbursed by end of 2016, going a long way in stabilizing the economies of beneficiary countries,” he said.
Dr. Larose announced that the Bank’s Board of Directors had proposed a dividend declaration of $37.96 million to Shareholders, which represents 32 per cent increase on the $28.82 million declared the previous year.
More than 100 speakers, including Ministers of Trade, Central Bank Governors, academics, African and global trade development experts, and business leaders, spoke during the four days of the Annual General Meetings and related events.
H.E. President Paul Kagame of Rwanda, also attended the AGM and when addressing the delegates, he stated that the many economic challenges confronting Africa should drive African countries to urgently increase trade among themselves.
“These factors should not just remain objects of reference,” he told delegates. “Instead, they should drive us to urgently increase trade with each other, invest more within our countries and regions, and build joint infrastructure, in order to better facilitate the movement of people and goods within Africa.”
President Kagame urged African Governments and the private sector to make the most of the possibilities offered by Afreximbank, noting that, for the last two decades, the Bank had been raising money, financing strategic projects and contributing to Africa’s pursuit of prosperity and independence.
On his part, the Afreximbank President, Dr. Benedict Oramah , announced on presenting his report to the AGM, that the institution’s cumulative facility approvals had reached $50 billion, due to record approvals of $10 billion in 2016, and that the Bank’s total assets amounted to about $12 billion in 2016, following a 64 per cent increase from a year earlier.
And that in addition, the Bank had received one-notch increase in its long term credit rating by Moody’s, from Baa2 to Baa1, as a result of a credit enhancement, which the Bank implemented to strengthen the quality of buffer conferred by its callable capital.
During the AGM, the Board of Governors of the Afreximbank, reviewed and endorsed the Bank’s 2016 Annual Report and audited financial statements.
In addition to the AGM, a series of seminars, round table meetings were organized, providing an important platform for shareholders to discuss and propose solutions in terms of growth and structural transformations of African Economy.
The meeting also featured the election of Ambassador Claver Gatete, Minister of Finance and Economic Planning of Rwanda as the new Chairman of the 25th General Meeting of Shareholders.
Since the last AGM, held in Seychelles, the following countries; Sao Tome and Principe, Djibouti, Burundi, South Sudan and Madagascar had joined the Bank as Participating States, bringing the number of Participating States and Shareholder countries to 45. Togo, Econet Global, Locafrique of Senegal, Atlantic Financial Group, and MBCA Bank Limited of Zimbabwe also became new shareholders in the equity of the Bank.
Minister Larose was accompanied during this mission by Mrs. Elizabeth Agathine, Principal Secretary of the Department of Economic Planning.
Note: Baa2;The ninth highest rating in Moody's Long-term Corporate Obligation Rating. Obligations rated Baa2 are subject to moderate credit risk. They are considered medium grade and as such may possess certain speculative characteristics. Rating one notch higher is Baa1.
Callable: denoting a bond that can be paid off earlier than the maturity date.